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tv   Closing Bell With Maria Bartiromo  CNBC  February 10, 2010 4:00pm-5:00pm EST

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connecting the farmer with a japanese customer... who was very appreciative. this is how cargill works with customers.
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well, we fell to follow through on yesterday's 150-point gain and now down about 6% from the january 19 high. eu summit tomorrow, do watch out. a huge potential for disappointment. the market think that it will get something on greece. "closing bell" continues with maria bartiromo. [ closing bell ringing ] it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. here's what we're following at close this snowy afternoon in new york. stocks are erasing modest losses today in the midday session on this wednesday. it's thanks to strengths in the financial services sector. in the end we do see the dow finished down about 20 points. speaking of bad weather, we saw below-average volume on wall street today on the heels of a major snowfall that put much of the east coast of the countryate
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standstill. coming up we'll take you around the country, look at the impact of the the economy and air travel with thousands of flights grounded as we speak. fed chairman, ben bernanke laying the groundwork on the central bank's exit strategy for the economic rescue efforts. we've got details of what mr. bernanke said today coming up. but first here's a look at how we finished the day on wall street. the dow jones industrial average under water today. down 21 points on the dow at 10038. under a billion shares traded here on the nyse, as people stayed home, instead of embracing the heavy travel and heavy snow. s&p 500 down 2.5%. quarter of a percent lower at 106 and the nasdaq composite gave up three points and technology one of the winners on the session as was financial services. we get all of the action right now from bertha coombs our floor on the nyse. >> reporter: hey, maria, all things considered it's not a very bad day on the close, even though we closed to the downside. the real factors that kept people hessittant today, the
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snow of course. that kept volumes lower, but also the uncertainty about where we're headed with greece. this morning, as you take a look at the intraday of the s&p, as we saw the headlines go back and forth, different officials being quoted anonymously out of the eu, and it looks like we weren't going to get something. we did see the s&p head down towards those lows that we saw a couple of days ago. but then we bounced. and the dollar really did bounce up and down with the low volume. we got a bit of a choppy trade. but at the end of the day things were strong. in part, because of the financials. financials were the standout all day. strong, relatively strong from the start. and as things got better in the afternoon, they were really leading the way. ben bernanke, though he didn't testify today because washington is closed, his testimony released on the exit strategies. no big surprises there. one trader telling me, well, you know there's an exit strategy in place. you've got to be positive about that if you're constructive on this market. one area that seems to be getting deconstructed in this market continues to be the steel
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sector. lothan mentel, bhp billiton, a cautious outlook. take a look at these stocks, down more than 20% in this sector since those january 19th highs. very much a bear market territory. the rest of the -- in commodities also under pressure. every time that dollar got stronger. as far as earnings movers, we've got some good results out of "the new york times", who said advertising is picking up as the outlook was cautious. one of the biggest losers, dean foods because of dairy producer, is one of the biggest losers on the s&p. it said butter fat was more expensive than it thought for dairy production. wyndham also. tripling it, maria. back to you. >> bertha, thanks very much. let's talk about investing in this market with chief investment officer for schwab investment management and chris ginter. with silvant capital management. gentlemen, nice to see you. thank you here in joining us. >> hi, thank you.
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>> jeff, you've been bullish for the long term. so we've got greece, possibly an issue. we've got the fed exit strategy, possibly an issue. we've got all sorts of happeningings in the economy in terms of a slow growth story. when you say you're bullish on stocks for the long term, what's the long term in your view? >> so, maria, since the march 9th lows of last year, schwab funds have been positioning our funds far more aggressive posture. and what i'm really talking about over the near term is that the bull market clearly off 60 -- up 60% or 70% from its lows. there's always caution when you look at the 1990 bull market beginning or the krsh after 1987. you get an explosion off of the low and then you get a market that settles in usually something does spook it and you get a correction or a pullback. these are healthy. these are normal. they're always different in what the contagion might be or the issue may be and i think that's why we're still in the beginning of a bull phase but it's not without its what achi does as i
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say and you jump around, my mentality or -- or advice to retail investment is to buy the dip mentality. continue to increase your equity exposure on pullbacks. >> okay, so buy the dips. that tells me that you believe that we're going to be able to get better value. i might be able to buy the dow at a better price than it is at right now. >> i don't know where the low might be but i would be dollar-across-averaging in. nobody can call lows whether it was 9900 that we hit a couple of days ago or if it goes lower. to me whether it's a percent or two, three or four, over a long-term investor i don't think that it matters that much. buying weakness or selling strength? and my mantra is buy weakness. >> chris, what do you think. weigh in here. do you agree that. >> yeah, at stillman capital we tend to agree with jeff. we're long-term investors too and we turn the cornerback in april and may in our portfoliop. to us, it feels like a cyclical,
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pro-cyclical tilt is the best place to be. it feels like 2004 all over again. we had a large move in the market in 2003. of course, there's a lot of risk still overhanging the market. and we need that. that's a necessary ingredient for there to be opportunity. we need that skepticism to be out there. and it's still a live, as you see the flows into fixed income today, very -- very sentiment out there. that money can move over to equities over the next few years. and we think that's what will unfold. it wasn't until mid-2004 when the consensus finally flipped from, is this a -- this is a vulnerable rally, a vulnerable to a double dip, to you know what, that is a sustainable rebound, and look the market ran for three, four more years. and we think that that's the case again today. >> all right, so you know you've got jeff talking about buying on the dips and one of the savior groups is financial services. so what about that, chris? because i'm looking at your groups and they are consumer discretionary, technology, energy, industrials. is this a market that's being
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made right here? you selling financials as jeff is buying them, chris? >> no, we're still -- we own financials too. in fact the financials that we do own went on credit-sensitive ones. we see credit loss formations declining. we see a lot of value in the financials. we own large cap banks in our large and small cap portfolios. >> jeff, your favorite is jpmorgan, right. >> it's been a long-term favorite for ours. ranked very highly, continues to. it's been in our portfolios for years. it weathered the downturn better. a wonderful opportunity for investors to gain exposure, financials which are 10% to 15% of the overault s&p 500. and my bet is that a lot of individuals are underexposed there. that's why i like to stress that. i also agree with chris. i think that individuals are probably underexposed to equities. just looking at trimtabs flow data and that worries me as well. these opportunities for buying pullbacks, instead i see a lot
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of money running into bond product instead and i want investors to get to an asset allocation as an investor goes forward. i think that will behoove them in the long run. >> i agree with the trimtabs. the problem is this isn't a train that you have not wanted to get in front of even though the flow's intercated differently from trimtabs. gentlemen, thank you. see you soon. we've got a developing story right now involving google. iran says that it will shut down google's g-mail in the country and launch a national e-mail service in iran. that is according "wall street journal." joining us now in london is nbc news chief foreign correspondent richard engle. >> reporter: a lot of restrictions put in place in iran at the moment. it's pretty much impossible to verify in latest story reported by the "the wall street journal" because for the last 48 hours or so, almost all internet connections in iran have been restricted or cut off entirely.
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the government is trying to prevent any kind of opposition, organizers, any people to organize demonstrations ahead of tomorrow's celebrations scheduled in the country for the anniversary of the islamic revolution. so this is part of a crackdown. it's very hard to know if this -- if this move against google's already taken effect or if this is something the government just says it plans to do later on. >> but does iran have the technical capability to shut down g-mail completely? >> reporter: it has the technical capability to shut down certain sites, but it's very difficult to make sure that they stay shut down. i've been in iran before, i've been in other countries where the government's try to restrict internet usage and usually young people find ways around it but it will certainly limit the ability and iran says this is in order to open the door for iranian businesses, and it says that g-mail will be replaced by a national internet provider, but it's pretty clear that this
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is one more step to try and eliminate communications, to cutoff iran, and prevent opposition, organizers, from taking to the streets tomorrow. >> yeah, it's really fascinating, richard. i mean, the last time we saw iran try to do this, shutoff all communications from the rest of the world, you know things showed up on youtube. and showed up out there and we saw pictures, obviously, the most famous picture of the woman being killed. i mean what do you think the implications of this are? will they actually able to shutoff communication with the world? >> reporter: probably not. but it will shutoff people who don't necessarily know how to avoid these kind of restrictions. >> yeah. >> reporter: there are softwares that you can use that will try to block this, but if you're a student, if you're a computer engineer and there are a lot of very tech-savvy iranians they'll know how do that but the average person, i wouldn't know how to get around any of these kind of fire walls. not sure if you would either so eliminate the amount communications coming out of
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iran. >> richard, we know that you'll be on air all day and tonight following this important story. appreciate your time tonight. >> reporter: my pleasure. >> richard engle, nbc news. staying with gooukgle. what kind of impact might that have? cnbc's jim goldman on that story. jim? >> reporter: hey, maria, good evening to you. the short answer, this could have a significant impacts. google using its own corporate blog to ignite a frenzy in the bandwidth and bandwidth communities. to build a super high-speed broadband test best. half million subscribers download speeds half times faster than what is available today. it will be as soon as possible. and no dollar figure attached either at least not yet and although analysts and sources saying that the company has been working on this for some time and likely not a big impact on the capex spending. the s.e.c. says that this significant trial will provide an american test bed for the next generation of innovative high-speed internet apps,
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devices and services. verizon calls dynamic and competitive and says google's expansion of its networks is another new paragraph in this exciting story. and the national cable and telecommunications association says it looks forward to learning more about google's broadband experiment in the handful of trial locations they are planning. excited and looking forward, well, that's more of a mask of nervously anticipating what this all might turn into and you can bet, at&t, verizon, sprint, comcast and so many others will be following this story extremely closely. there is much more on the blog, maria, >> we'll be there, jim, thanks so much, jim goldman. federal reserve chairman ben bernanke beginning to outline today the central bank's strategy for reeling in stimulus aid. cnbc's steve liesman on the details. steve? >> reporter: thanks very much. yes, significant policy speech from fed chairman ben bernanke detailing houtcentral bank will eventually get out of incredible easy monetary policy he put into place during the financial
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crisis. mortgages were initially spooked that explanation the exit strategy meant those strategies would happen sooner than originally thought but further reviewed investors seem to take bernanke at his word, that no tightening of policy was imminent. fed chairman ben bernanke said that he would probably raise the discount rate, the rate charged to banks. and the new target for fed policy, to kmouncation where it's going, is going to be the interest on that $1 trillion of excess reserves. the fed may also target the reserve balances that were out there. something that the fed hasn't done since the '80s. bernanke went out of his way to say that these changes do not signal a change in monetary policy. made a point of emphasizing that policy remains when the fed in the january which he said to stay exceptionally low for an extended period. the fed chairman was supposed to deliver this speech at a hearing today in congress, it was canceled because of the snow. but the fed clearly felt the message was significant and urgent enough that they went
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ahead and released the testimony anyway. back to you guys. >> all right, thanks very much, steve liesman with the latest there. take a look at the. business headlines recovering today. the eia raised its projection said for world oil demand. 1.2 million a barrels a day in 2010. up 120,000 barrels. the news and the drop in the dollar help ed pricings rebound today from an earlier report in which opec cut its growth productions. oil finished higher, up above $74 a barrel. $74.47 on crude. the u.s. trade deficit widened unexpectedly in december to $40.2 billion. worse plan what wall street was calling for, where analysts said they were expecting the trade gap to narrow to $36 billion. and the mortgage bankers association says filings for mortgage applications are down by 1.2% last week. that move coming because of a drop in the number of home buyers, even though the average rate for a 30-year mortgage fell below 5%. take a short break here on "closing bell," and then the latest on the paralyzing storm
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in the northeast. yes, snow continues on wall street. we have the latest on the blizzard. plus a closer look at how the storm is impacting travel and businesses across the country.
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welcome back. now a look at the other stories that we're following on the "closing bell" ticker tonight. the world's largest steelmaker reporting fourth quarter profits of $2.1 billion for the quarter. that was slightly lower than the $2.25 billion that analysts look for. the stock getting hit hard after the warning of a slow recovery in the steel market and delivering a first quarter profit range below expectations. the stock today down 7%. as you can see. the a.p. is reporting that american airlines could be getting hit with one of the biggest fines. the faa's ever given out. it comes from a two-year investigation into 290 of the
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carriers' amd-80 fleet for safety violations. $10.2 million the agency gave to southwest two years ago. the stock today down a quarter of a percent on the parent company american airlines. and kraft moving higher after jpmorgan added the company's stock to its focus list. telling clients that the addition of cadbury will help that company's earning's potential after the year. the stock tonight in sizable volume actually. kraft today up a fraction. we have breaking news right now. back to headquarters, we go. matt nesto's there. >> reporter: all right, maria, thanks very much. in the joint venture press release, dow jones and the cme, chicago mercantile exchange, have announced a new leg, if you will, in terms of how they are going to issue indexes. they say it will operate a global financial index service business. definitive agreement provide cme group only 90% of it, 10 force dow jones and follows the previous sale of the stocks.
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the european indexes which brought about a billion dollars to dow jones and it maintains that it will allow the dow jones to contribute to its indexes, retaining key role the management on the dow jones industrial average. cme will continue to the businesses and market data but it's an index voyant venture between dow jones and cme. back to you. >> so it's jv, not necessarily an all-and-out takeover the rumor going around. >> reporter: 90 to know. 90% cme control. >> there you you go. more like a takeover than a joint ventu, 910. thanks, hat. >> reporter: you got it. the huge blizzard that's pretty much paralyzed the northeast of the region tonight. the weather channel's chris warren is in central park right now in new york with the very latest. >> reporter: yeah, things here at central park not as bad as we're seeing in other locations. yes, we're getting a lot of that heavy snow but it's not as windy say out at jfk where there are
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blizzard conditions going othere have been, and heavy snow out of newark with three inches in an hour. at one point. here in central park, you could almost say it's festive and you don't get to see this too often. jane boogaard just skied up to us. she's got her cross-country skis on. she's a local here. >> i. >> how is it. >> it's amazing. i look forward to this every year. i brought my skis to work hoping we would close early. >> reporter: did you close early? >> yes we did. well, i didn't sneak out ipromised! we closed early and couldn't wait to get here. i love cross-country skiing. >> reporter: you've been out in the park. >> i have. >> reporter: what you are seeing out there. >> other cross-country skiers, very friendly people, lots of snowball fights. lots of snow people, gender, kind of indiscriminate. >> reporter: okay. >> and just people having a great time. >> reporter: all right, well, thank you very much. >> thank you. >> reporter: and be careful out there. >> i will. >> reporter: be safe. thanks for stopping by. so here in central park, it's festive. a lot of people aren't at work, kids having a day off and talking about the snowman around
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us, probably as many as snowmen in central park as there are statues. maybe even more of them. now the snow's coming down right now and we are expecting the snow to continue on into tonight and the winds are going to remain pretty strong as area of low pressure continues to deepen and it moves through the region. so we're still looking for the windy conditions. could see blizzard condition here. but so far, it's just been snowy, some could say, pretty safely a fun scene as well. back to you in the studios. >> that looks like a lot of fun. thanks, chris. so what's the problem? how is all of this snow affecting the travel and transportation industries? matt nesto working that angle. matt? >> reporter: it's me again, maria. it's interesting, weather aside for a second, this transports and cyclicals, generally, were weak today. and this of course after that huge rebound that we saw yesterday, tuesday. in fact, if you step back just a few days, if you look at the dow transports versus the dow jones industrials the transports are actually on track for what will be their -- only their second winning week this year. also, as you could see, broadly
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outperforming the other benchmarks. analysts tell cnbc the bottom-line impact of this storm won't be known until it actually stops snowing and we can find out what the full extent is. if you take a look at the effect on some the airline stocks today, pretty much weakness across the board, but again, maria, that's more of a macro issue. now the analysts also point out that most of the airline's budget a few days worth of weather-related flight cancellations into their first quarter, each year. they call them irregular operations, i-rops. they don't know how much i-rops they built into these models. good news or bad news when the quarterfinally closes out. another area of vulnerability is the nact this is a midweek storm which tends to lead to more outright travel cancellations by business travelers versus tourists who will get to their final destination come hell or high water. no storm will get in their way. and finally, analysts say, it's cheaper and far less disruptive for an airline to scrap the
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entire day like continental did in newark than to pay your staff, stay around, wait, do nothing and deicing planes which costs a lot and foot the bill for irritated and stranded businesses. u.p.s. and fedex both say they'll have a manageable mountain of what they call retained volume, on undelivered packages, between you and i, and they'll be able to work on through that if things do not continue for a work but due to impassable roads and closed businesses, unable to accept deliveries. lastly a peek at amtrak, running unlimited express but tech nickly the quarter between boston, new york and washington, is actually still open. back to you. >> all right, you know, hey, matt, this is a separate story, but did you hear yesterday one of the airlines are going to start charging like $6 or $8 if you want a pillow and a blanket? >> reporter: eight bucks a blanket. >> god. >> reporter: do you get to keep it is the question? >> that is the question. >> reporter: you do. >> all right, matt, thank you. see you later. the a.r.t.o industry,
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meanwhile, also on the central stage today once again. phil lebeau has that story. >> reporter: maria, here at chicago auto show toyota executive said they're making progress replacing faulty gas pedals but are they making progress convincing us that they told us everything that they know about these unintended acceleration recalls?
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check out this mover in the extended hours here. activision blizzard up 4.5%.
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the company beat earnings and revenue estimates with its latest quarterly numbers. we're seeing some real money move into this stock into the extended hours with that gain there. activision blizzard on their earnings. the nongap etf 40 cents a share for the fourth quarter. revenue also ahead at 2.5 billion versus an estimate of 2.23 billion for the fourth quarter. on activision. toyota meanwhile, capt much of the headlines in recent weeks in the country. cnbc's phil lebeau is there right now with the story. phil? >> reporter: maria, there may be all of the automakers here showing all of the vehicle but most of the questions most people are talking about they surround toyota and in the slew of recalls that we've seen in the last five months. today, the company said that it's making progress when it comes to replacing those faulty gas pedals, putting the shims in there, the company says it has, so far, replaced about 220,000. 50,000 a day is how many are
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being repaired as people bring their vehicles in. meanwhile, toyota's vice president for north america bob carter was here unveiling a new vehicle for the company but all the questions involved how the company is handling the questions about its safety and reliability? he says toyota has to prove public that it has fixed all of its safety problems with regard to the unintended acceleration and sticky gas pedals. i asked him what he says to people who still believe that, perhaps, electronics might be responsible for unintended acceleration. here's what he had to say. >> yes, yes. we have spent years, clearly, developing these and exhaustively testing. we have companies outside of toyota that is -- that is independently testing them, have tested them in the past and are in testing -- in -- externally testing them today. we have no indication, whatsoever, that anything can happen that would directionally indicate that could
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intentionally cause unintended acceleration. >> reporter: bob carter, once again, denying that electronics play any role in these unintended acceleration cases. as you look at ford and toyota shares in the last three months, talk about a tale of two stocks going into different direction. more of what is to blame or who needs to answer more questions regarding toyota's recalls check out the blog >> thanks so much. callaway golf swung for the fences this past weekend with a big ad that ran during the super bowl. after a difficult 2009, in which the number of golf rounds declined as the economy struggled to find its footing the company is looking towards new products to get back to par and beyond in 2010. joining us now from pebble beach, california, callaway golf president and ceo george fellows. now there's a picture, mr. fellows, it is snowing massively in new york and throughout much of the northeast, and there you are in gorgeous pebble beach, california. is it hot there? >> would i make you feel any
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better if i told you it was cold. >> yeah, yeah you would! okay, you've got -- let me move on here. you've got 15 products that made "golf digest" hot list in january. tell us about them and what it you're looking to capitalize on, new technology, in terms of bringing that into new products. >> well, new technology's pretty much in the dna of the company. we have an extraordinary lineup for the 2010 year. the diablo edge line is the new line. and all five products in the diablo edge family, if you will, won the gold medal in the "golf digest" review so we're very excited about the new year. not only the diablo edge, but we have fdiz drivers, an entirely new line of puttors under the odyssey name. we have two new golf balls, the iz and the i.s. so looking for a good recovery year. >> so what is the technology in
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innovation that's being created for golfers? give me the edge that you're expecting for golfers. >> well, we -- we produced products that are really among the finest in the industry. they hit longer. they hit straighter, which is most important for golfers, like myself, of course. our new golf ball technology's quite wonderful. you get much more spin around the green without losing any distance. i could get into a lot of technical detail. but suffice it to say that the golf testing that we've done on all of our new products really say these are among the best productings that we've ever made. >> yeah that explains it. two weeks ago callaway report a loss in the fourth quarter. $18 million compared to $3 million a year earlier, a $3 million loss. what's going on in terms of business right now, sir? do you think that people are saying look, the economy's slow. i will stick with what i have right now? what was the result of in terms
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of actual volume in business that you're seeing on the ground? >> well, i think -- i think '09 represented pretty much what happened to the economy as a whole. the golf products obviously are a discretionary purchase and i think a lot of people are worried about their job or the security of their income, decided to pass on the year. one of the reasons that we think '10 may be a very interesting rover year is there a latent buildup of purchasing power and coming out of bad economy as people feel more comfortable with l situation i think that they'll come back into the marketplace and start buying new products. that's why we're very excited about our new line this year. >> and you're actually expanding around the world, right? the you're doing callaway golf india. >> yes. we're -- well, i think, you know, a lot of the -- a lot of the -- countries out of u.s. took the vote of the ioc to get the vote out of olympics as a signal to begin expanding all of the infrastructure in their countries in order to get themselves ready for golf in
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'16. now the traditions of golf in india are really long-standing. the second-oldest golf course in the world is in calcutta, so we think that india represents, potentially, a -- down the road, one of the largest golf market, in the world. >> all right, we'll be watching that, mr. fellows, nice to have you on the program. we appreciate your time tonight. and enjoy that -- >> no problem, good to be with you. >> enjoy that perfect spot in the world, pebble beach. george fellows is callaway ceo and president. exclusive disney with bob iger about the company's future strategy and excel capital breaks down his company results. h
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welcome back. excel capital out with fourth quarter results. narrowing its loss to $40 million versus a $1.5 billion loss a year earlier. there's a look at the markets today. the dow, the nasdaq and the s&p under pressure and excel capital
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numbers as you can see a loss of $40 million. as the company looks to improve its balance sheet, xl stock is nearly up 100% over the last year. joining us to break down the numbers is ceo mike mcgavick. mr. mcgavick, nice to have you on the program. you've got a great vantage points in terms of where things are. how would you characterize the economic landscape today? >> i would describe it as broadly stuck in neutral. i mean, in essence, we've seen this huge downturn in economic activity and now people are starting to put their toes out to figure out where they can zbroe but we're not seeing evidence of that growth at all. in fact, we just finished our 1/1 renewals over in europe and saw our exposures flat to down, which means economic activity overall is still price to down. >> pricing is an issue. what you are expecting in terms of pricing in 2010. >> well in insurance, we're violently cyclically industry. we've been stuck in the soft portion of pricing for some years now and looking at 2010 as another year of that soft part of the cycle. there are certain products where
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pricing is advocate but generally insurers are not charging enough for the risk that they're taking on. >> what about risk management, what are people doing now? still a lot of adversity to risk? how are managers and operators of businesses approaching risk? >> most interesting, we find a lot of risk managers really worried about the cost that they're giving to their company in trying to manage down those costs. there's several roots to doing so. one, of course, is risk management, trying to identify risky areas and somehow contain those exposures. another way to do so is reduce what you're buying, or redesign your insurance program. retain more risk for the corporation. we try to work with our insurers in whatever way they want. >> i know over the tough period, after lehman brothers went bankrupt and the entire industry was under severe pressure, an overreaction, some might say, to the downside. but what would you attribute a 500% in your stock over the last year? >> clearly, people in xl have a lot to be proud of right now but that only did happened because we went down severely in the
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last two years but when we regained our footing and saw that the franchise survived that late noise in '08 and late in '09 i think that people were impressed by the progress of the franchise. indicators of our firm to kind of roaring back and i think that's being appreciated biour shareholders. >> are you still in the mode of winning some customers back? a lot of confusion in the marketplace, we know that, and your company, along with many others, lost customers. how do you win those people back? >> we're already in that process. xl has a great reputation in the market for clang, for fairness, we believe that people want to be with us. times when they doubted us back in '08 and 09. clearly reversed. fourth quarter last year our top line declined only a few points. the beginning the year was more like 30 points so clearly those customers are coming back to xl. we're proud of that. >> all right, we hope that you'll come back and give us an update on it. michael mcgavick, ceo of xl capital. is
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well, we want to show you this radar map to show you where the storm is right now. it's currently squatting over new york. we are seeing consistent snowfall in the new york area, and by the way, washington, also saw a record amount of snow fall. thousands of flights already canceltd at jfk and laguardia and we're expecting the snow to be quite heavy during rush hour home in new york.
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we'll continue tracking this storm for you. meanwhile, on technology, is apple becominging the next microsoft? that's the question posed in a "the wall street journal" op-ed today. the article contending that apple is squandering its earnings on paranoid attempts to secure a privileged position. we get a closer look at what this means with brian marshal. he's senior analyst at broadpoint antech and silicon valley bureau chief jim goldman. good to have you on the program, gentlemen, thank you very much for joining us. brian, is this your view that apple is in fact becoming the next microsoft? putting product aside and looking at overall strategy? >> yeah, i don't think so, maria. i think what apple's doing is basically creating a very powerful, unique distribution platform for content providers. app's developers, if you will. basically what they're doing is cathy the best distribution platform for that user community. and that in turn, creates the best products on the planet, in my opinion. >> jim, how do you see it? >> reporter: squandering earnings, if anything, apple can be accused of hoarding its
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earnings. i mean here's a company that's what, knock up against $40 billion in cash. this is a company that is simply creating a better mouse trap, and to look at them and compare them to microsoft, in the case of microsoft, there was no choice on the market. it became a monopoly because consumers had to, if apple turns out tibmonopoly in digital music, it's because consumers want to. consumers are out there choosing apple products. they're not being forced to buy them. >> so -- but i mean, if you're looking at overall strategy and not necessarily looking at the next innovation, is that going to be a trip-up? >> reporter: well, you know, some people are going to complain that apple is not incorporating flash from adobe that there's a move away from google as opposed to -- you know as far as the default's search engine is concerned. on iphone maybe they will choose bing for microsoft. the market has a funny way of choosing these things. if these are the strategies that apple's going to employ and consumers don't like them, they will go elsewhere for their digital media and for their
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communications. apple cannot be faulted for trying to keep its closed ecosystem as strong and as robust as possible. that's what shareholders want and if investors like that, they'll continue to buy apple's stock be, and if consumers don't like it, they won't buy apple products and investors will go elsewhere. >> and, brian, you think that the i-pad in fact is revolutionary? >> definitely. i mean i completely agree with jim. if you look -- on the iphone and the ipad touch we've shipped about 80 million units since inception and that year the ipad obviously will launch you know in about -- a month and a half in late march. we expect -- we're currently in printed 2.2 million units but when it is all said and din wouldn't be surprised to see between 5 million and 10 million ipads shipped this year and that's again creating that distribution platform for content providers and everybody's flocking to it. the designers are flocking to it and the consumers are flock to it. i thought that the article was
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interesting. they thought that apple might be larger than microsoft in terms of market cap. some point down the road. i completely agree with that point. but, again, i disagree with the fact that they're squandering earnings. >> well, i mean, is the company being defensive or offensive in its strategy in your view. >> completely offensive. i don't think anything defensive about apple in my opinion. i mean, if you look, they're obviously the innovators of smartphones. they're the innovators of computers. and i think they're going to be the innovator on this new product, the ipad. and so we see the dell's, the hps of the world trying to create something similar following in apple's footsteps if you. definitely in the offense in my opinion. >> jim uwrote in idea of apple becoming microsoft in a different way back on your blog back in september of and the 08, right? >> reporter: yeah a lot of people have been talking about this for a long time as apple gains more power and influence in the marketplace, but i go back to that simple concept of, you know, there is choice out there. and ironically, apple is enjoying all of this power and influence simply because it
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offers choice in the marketplace. and it truly is a threat to the likes of microsoft and so many others, and people complain about this closed ecosystem, i buy an ipod and the only way to use it is if i go to itunes or i can buy -- or i can get content free on hulu, for an example but if i don't have access to flash, i have to buy that same content on itunes. the fact is if people don't like that, they can go buy a zume from microsoft and the fact is, and the market is determining this ipod is outselling zume 1,000 to 1. apple is reepg the rewards from a better mouse trap. >> you are right. consumers have definitely spoken. gentlemen, thank you. a followup to the "the wall street journal" report early crerthis hour that iran shutdown google's g-mail. a state department spokesperson tells reuters while washington cannot confirm an iranian move on google, quite the iranian
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government seems determined to deny its citizens access to information. the state department says any attempt by iran to construct a virtual wall to keep information from its citizens, though, will ultimately fail. that is according to the state department. we told you earlier that iran is said to be shutting down g-mail in the country. coming up, an exclusive interview with disney ceo's bob iger. houtcurrent economic environment is impacting disney's bottom line. time now for "going global" asia. >> we're just getting started here in asia and here are the stories to watch. reports its full-year results today on the back of a slightly quarter turn from rival bhp billiton. watching to see if the minor is still on track to lead its targets. january unemployment numbers are out today and the markets are waiting to see if the unemployment of 5.5% will head lower. a jobless rate could provide
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acceleration. central bank seems to be less sanguine about their economy. is widely expected to keep todas widely expected to keep rates on hold again, despite signs of economic strength. catch all the action overseas at cnbc's asia headquarters. and still no one knows the sun life financial name.ialy that changes today. i hear you're the clown in charge. so, cirque du soleil becomes... ...cirque du sun life. because soleil means sun.... (gibberish) i'll take that as a yes... sooner or later, you'll know our name. sun life financial.
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welcome back, disney beat wall street estimates on the top and bottom lines with strength at the company's media networks. bob igor sat down with julia for an exclusive interview. >> reporter: bob igor has lots to say on the economy. he noted that while the consumer isn't totally back, the theme parks have held up despite the economy. >> we believe the advertising market is strengthening, we're seeing direct evidence of that
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now, and we believe that while visibility isn't great, it probably will continue to strengthen somewhat as the year progresses. we're not making any predictions at all about travel and tourism. we know we have great product notice marketplace, we're still discounting to get the volume we'd like in that business. >> reporter: under pressure to compete with mgm's theme park, disney is dealing with a much more competitive market place. >> you're dealing with an economy as we just discussed that's relatively soft, and you're dealing with, i believe, a greater amount of piracy which is and can be a real threat. and the sooner we put a product into the marketplace, the less vulnerable we are to piracy. >> you can find my entire
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interview with buying iger on my blog, let's take you to a preview of fast money? >> tonight on fast money, it's all about mr. bernanke and greece. there will be a package for greece, but what about the fallout. are all governments gore to be required to pay a higher yield on their debt? the right time to raise interest rates or not? we'll try to make sense of all that at 5:00 eastern time. a sneak peak of what could move the markets tomorrow, including jobless claims and a key report on global interest rates.
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there's a whole host of other points embedded that we'll pay attention to on a nonadjusted or emergency


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